Press releases

José Luís Sapateiro 2020 Prize awards research work on non-conventional monetary policy and liquidity of public debt bond markets

5 November 2021


The José Luís Sapateiro Prize for 2020 was awarded to the economic work “Market Liquidity in the Era of Unconventional Monetary Policy”, by Daniel Salazar. The award-winning research work focuses on studying the impact of recent developments of monetary policy on the liquidity of the sovereign bond market in the Euro Area within the secondary market.

The jury, consisting of Professors Maria do Céu Cortez (University of Minho), Paulo Soares de Pinho (NOVA School of Business and Economics) and Victor Mendes (President of the Jury) unanimously decided to distinguish the work of Daniel Salazar “taking into account the uniqueness, formalism and rigor with which the subject is approached, the ability to convey and the interest and bearing of the theme for the purpose of securities market supervision”.

“This year's José Luís Sapateiro Prize once again, distinguishes the reflection and knowledge produced in our universities on the capital market, which constitute an essential contribution to better understand the past and present of our market and in projecting the future. This awarded economic work is a clear example of this and is awarded due to its relevance and timeliness, when analysing recent developments in monetary policy and their impacts on the liquidity of sovereign bonds. I congratulate the author on the quality and timeliness of his work".

The main objective of this study was to “find a relationship between unconventional monetary policy and the liquidity of public debt bond markets”, says the author, based on the following initial issues: “What role do central banks play, through monetary non-conventional policy in the market liquidity of public debt bonds? And does this role vary across jurisdictions?”. The simpler specification of the model, he explains, “did not allow us to validate the fact that more accommodating monetary policies improve liquidity conditions. However, in the following specifications, this relationship is validated for Portugal and Spain, individually, and also for the group of Southern European countries, although not for France or Italy, individually.”

Daniel Salazar states that “as a professional working in the financial markets, it is a great honour to receive this distinction, awarded by an entity with the status of the Portuguese Securities Market Commission. This recognition reflects the relevance of studying the impact of monetary policy on bond markets in the Portuguese panorama and increases motivation to continue working and strengthening my knowledge in this area”, he stresses.

The José Luís Sapateiro Prize awards annually and alternately, works of a legal and economic nature that have been completed in the year prior to the application and that have not been previously published, with a monetary prize of 5 thousand euros. The 22nd edition is currently taking place for legal works. A version of the award-winning work will be published in the 70th edition of the Securities Markets Review.

The disclosure of the award is associated with the CMVM’s 30th anniversary celebration. The CMVM was created on 10 May 1991 and its mission is to regulate and supervise the Portuguese financial instruments market and the entities that operate therein to benefit investors and for the proper functioning of the market.